St Laurence chases Rural Equities stake

Friday 4th June 2004

On Wednesday St Laurence Equities announced a stand in the market seeking to acquire up to 19.9% of shares in Rural Equities Limited.

St Laurence's offer price is $1.50 cash a share on a first in, first accepted basis.

This stand in the market is separate from and in addition to the formal takeover offer for up to 100% of shares in Rural Equities that St Laurence announced last month.

The offer price of the formal takeover offer is also $1.50 cash a share, which values the company at $22.2 million.

"Rural Equities shareholders considering accepting the formal takeover offer by St Laurence can instead choose to participate in our market stand," St Laurence managing director Kevin Podmore said.

"The market stand offers Rural Equities shareholders certainty. They can sell all their shares at a fair and reasonable price immediately, with no scaling."

Rural Equities is subject to a partial takeover offer from H&G Ltd, a company owned by Sir Selwyn Cushing and David Cushing.

H&G has offered $1.25 a share to take its and associates' combined holding in the company to 50.1%.

A Deloitte valuation of Rural Equities assesses the fair market value of a 50.1% controlling shareholding in Rural Equities to be $1.21-1.46 a share.

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